For the first time in nine months, UK house prices have dipped, with a slight 0.2% fall recorded between November and December 2024, according to Halifax’s latest index. However, despite the minor monthly decrease, property prices still showed a 3.3% annual increase compared to the same time last year.
Market analysts and property professionals have largely attributed the December drop to seasonal trends and a market “pause for breath” before an expected surge in activity during the first quarter of 2025.
Jonathan Hopper, CEO of Garrington Property Finders, explained: “December’s dip in house prices is likely to be little more than a pause for breath before the January bounce. Activity is especially strong among first-time buyers, many of whom are racing to get into their new home before the stamp duty thresholds change at the end of March.”
Optimism among buyers and sellers
Despite the minor December fall, industry leaders are optimistic about the market’s trajectory. Nathan Emerson, CEO of Propertymark, highlighted the growing confidence among buyers and sellers.
“Our member agents recently reported that the overall number of properties achieving their asking prices has nearly doubled from 6% to 11%, showing a real desire and confidence from prospective and current homeowners to approach the buying and selling process,” Emerson said.
He also pointed to the impact of the upcoming stamp duty changes: “As people start to feel more settled within their financial position, and with an expected rush as many across England and Northern Ireland provision themselves to navigate stamp duty rises from April, we expect to see an upbeat and confident start to the year.”
This sentiment is echoed by Verona Frankish, CEO of Yopa, who said: “December saw a first monthly decline in house prices following five consecutive months of positive growth, albeit a very slight drop, but this is certainly no cause for concern given the seasonality at play. In fact, a pause for breath was probably required ahead of what is set to be a very busy first quarter.”
Landlords and investors remain key drivers
For landlords and investors, the overall resilience of the property market continues to provide opportunities for long-term growth. Marc von Grundherr, Director of Benham and Reeves, noted the market’s strength despite economic challenges.
“A marginal monthly decline in the rate of house price growth during December highlights the usual seasonal lull caused by the festive break,” he stated. “However, a strong annual rate of growth demonstrates a market that has very much found its form during the latter stages of 2024, following a period of prolonged economic turbulence largely driven by a spike in interest rates.”
Looking ahead, von Grundherr remains optimistic: “The market resilience seen throughout 2024 has provided a very strong foundation for 2025, and it’s widely predicted that house prices are only going to go one way—and that’s up.”
The December dip provides a moment to reflect on the shifting dynamics of the UK property market. With changes to stamp duty thresholds and expectations of falling interest rates in 2025, many industry experts predict a busy and competitive year ahead.
